Personal Finance 1st Edition by Jack R. Kapoor

Exercise 31

Finding Total Return. Assume that one year ago, you bought 200 shares of a mutual fund for $21 per share, you received an income distribution of $0.11 cents per share and a capital gain distribution of $0.32 cents per share during the past 12 months. Also assume the market value of the fund is now $23 a share. Calculate the total return for this investment if you were to sell it now.

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An investor purchased 200 shares of mutual fund one year ago. Price of the share at that time is $21. The income dividends ($0.11 per share) and capital gain ($0.32 per share) were distributed during the last year. The fund can be sold at the price of $23 per share.